Question

# Using the data in the table to the right, calculate the return for investing in the...

Using the data in the table to the right, calculate the return for investing in the stock from January 1 to December 31. Prices are after the dividend has been paid.

 Date Price Dividend Jan 1 \$31.79 − Feb 5 \$32.58 \$0.21 May 14 \$28.99 \$0.21 Aug 13 \$32.19 \$0.22 Nov 12 \$37.35 \$0.19 Dec 31 \$42.82 −

The return for the entire period is ____ %.

(Round to two decimal places.)

#### Homework Answers

Answer #1

Return for Period 1 =(Ending price-Beginning Price+dividend)/Price beginning =(32.58-31.79+0.21)/31.79 =3.1456%
Return for Period 2 =(Ending price-Beginning Price+dividend)/Price beginning =(28.99-32.58+0.21)/32.58 =-10.3475%
Return for Period 3 =(Ending price-Beginning Price+dividend)/Price beginning =(32.19-28.99+0.22)/28.99 =11.7972%
Return for Period 4 =(Ending price-Beginning Price+dividend)/Price beginning =(37.35-32.19+0.19)/32.19=16.6201%
Return for Period 5 =(Ending price-Beginning Price+dividend)/Price beginning =(42.82-37.35+0)/37.35=14.6452%

Return for entire period =(3.1456%-10.3475%+11.7972%+16.6201%+14.6452%)/5 =7.17%

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